Indian Tech Sector Expected to Hit $350 Billion by FY25 Amid Rising Salaries

According to a report released on Tuesday, the Indian technology sector is expected to reach $350 billion by FY25 from $254 billion in FY24, driven by remote work and digital-first approaches.

Advanced technologies are reshaping traditional industries outside the circle of technology. More than 70% of organizations in these industries, including telecommunications, media and entertainment, banking, financial services and insurance, energy, and utilities, were spending more than 20% of their technology budget on digital innovation.

At the same time, the technology workforce in non-technology industries is expected to increase at a CAGR of 7.86%, taking the workforce from 765,000 in FY22 to 1.115 million by FY27, according to how technology is merging more and more with traditional industries.

The average annual compensation for such an SAP-ABAP consultant starts with Rs 7.2 lakh in non-tech sectors and can go up to Rs 31 lakh with over eight years of work experience.

In the cloud computing segment of IT products and services, investment as a proportion is expected to grow at a rate of 25-30% in the coming five years. It is estimated that this industry will account for 8% of the country's GDP by 2026 and promises to create 14 million jobs with cloud adoption, thus highlighting that this is highly impactful.

For IT products and services, a Big Data developer's starting salary is about Rs 9.7 lakh per month and goes up to Rs 20.7 lakh annually at senior levels, the report pointed out.

"Improvement in technologies like 5G and IoT is likely to further change India's technology landscape, making it at the forefront of global technology advancements," Neeti Sharma, CEO, TeamLease Digital said.

The report also said that India, which already has over 1,600 GCCs with employment of around 1.66 million people, would add another 800 GCCs over the next 5-6 years. This, in a way, will place India more strongly as the emerging global technology hub.

Interestingly, the trend now is to set up GCCs in tier 2 cities such as Kolkata, Ahmedabad, and Vadodara, reflecting a broader distribution of technology opportunities across the country.

AI/ML engineers in GCCs start at an annual salary of about Rs 8.2 lakh, which can rise to Rs 43 lakh with more than eight years of experience.